Labour market change

Labour market segmentation: Piloting new empirical and policy analyses

Report
Updated
02 December 2019
Published
02 December 2019
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Executive summary

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Abstract

This report sets out to describe what labour market segmentation is and why it is problematic for the labour market and society, as well as disadvantaged groups. It takes a broad view of the term to examine the situation that arises when the divergence in working conditions between different groups of workers is attributable to factors other than differentials in human capital levels. The report explores which policies or instruments are most effective in combating labour market segmentation, taking into account specific situational characteristics. The report offers a novel approach to the study of labour market segmentation that combines a quantitative empirical analysis with a policy analysis.

  • Full report

    Number of Pages: 
    96
    Reference No: 
    EF19033
    ISBN: 
    978-92-897-1988-9
    Catalogue: 
    TJ-04-19-670-EN-N
    DOI: 
    10.2806/751649
    Catalogue info

    Labour market segmentation: Piloting new empirical and policy analyses

    This report sets out to describe what labour market segmentation is and why it is problematic for the labour market and society, as well as disadvantaged groups. It takes a broad view of the term to examine the situation that arises when the divergence in working conditions between different groups of workers is attributable to factors other than differentials in human capital levels.

    Available formats

    • Download full reportPDF
    Cite this publication as: 
    Eurofound (2019), Labour market segmentation: Piloting new empirical and policy analyses, Publications Office of the European Union, Luxembourg.
  • Executive summary

    Reference No: 
    EF190331
    Catalogue info

    Labour market segmentation: Piloting new empirical and policy analyses - Executive summary

    Authors: 
    Eurofound

    While labour market segmentation (LMS) has been researched from the perspectives of different branches of literature, it nevertheless remains vague as a concept. It emerged as an alternative to neoclassical economics and human capital theories, which assume that wages and working conditions generally depend on the worker’s human capital and productivity level. Instead, LMS theory maintains that differences in working conditions between groups of workers may also be due to factors such as contractual arrangements or other institutional characteristics. 

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  • Working papers

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  • Tables and graphs

    • Table 1: Salient elements of LMS theories
    • Table 2: Drivers of LMS
    • Table 3: Main issues for affected groups
    • Table 4: Labour market states taken into account for alphabet A
    • Table 5: Labour market states taken into account for alphabet B (predominant employment profiles)
    • Table 6: Challenges for the empirical study of LMS
    • Table 7: Shares of the career trajectory groups in each country (%)
    • Table 8: Summary of results from the regression analysis
    • Table 9: Measures analysed by type, country and reasons for selection
    • Table 10: Case studies on ALMPs
    • Table 11: Case studies on assisted contracts
    • Table 12: Case study on self-employment promotion
    • Table 13: Case studies on minimum wage
    • Table 14: Case study on VET
    • Table 15: Case study on family policies
    • Table A1: Detailed results of the regression analysis
    • Figure 1: Conceptual framework for LMS
    • Figure 2: Approaches in LMS studies
    • Figure 3: Methodological steps of the empirical analysis
    • Figure 4: Share of labour market states using alphabet A – France, Spain, UK, Germany (%)
    • Figure 5: Labour market states using alphabet B – pre-crisis period
    • Figure 6: Labour market states using alphabet B – crisis period
    • Figure 7: Average year-to-year transition rates between temporary (full-time) and permanent (full-time) employment (%)
    • Figure 8: Average year-to-year transition rates between permanent (full-time) employment and unemployment (%)
    • Figure 9: Average year-to-year transition rates between temporary (full-time) and unemployment (%)
    • Figure 10: Average year-to-year contract type stability rates (%)
    • Figure 11: Average year-to-year upward transition rates considering contract type, occupational category and pay (%)
    • Figure 12: Average year-to-year downward transition rates considering contract type, occupational category and pay (%)
    • Figure 13: Average career stability rates accounting for contract type, occupational category and earnings (%)
    • Figure 14: Career trajectory groups in France (%)
    • Figure 15: Career trajectory groups in Germany (%)
    • Figure 16: Career trajectory groups in Spain (%)
    • Figure 17: Career trajectory groups in the UK (%)
    • Figure 18: France – Career group composition, crisis period (2009–2014) (%)
    • Figure 19: Germany – Career group composition, pre-crisis (2001–2008) and crisis periods (2009–2016) (%)
    • Figure 20: Spain – Career group composition, pre-crisis (2001–2008) and crisis periods (2009–2016) (%)
    • Figure 21: UK – Career group composition, pre-crisis (2001–2008) (%)
    • Figure 22: Career group composition in terms of economic sector for France, Germany and the UK (%)
    • Figure 23: Annual average earnings across countries by career trajectory group (in €)
    • Figure 24: Theoretical framework of labour market segmentation
    • Figure 25: Key developments in EU policies relevant to LMS since 2008
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